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Friday, March 5, 2010

JAKARTA: The ownership of foreign investors in government bonds (surat utang negara/SUN) increased IDR730 billion at the beginning of this month, 2 March, at the level of IDR121, 54 trillion, from the position for IDR120, 81 trillion last month.

The position fulfill the composition of ownership of foreign investors in the position for 20.33% of the value of outstanding SUN.

"It was somewhat corrected in this day, but not much, maybe more because of Pansus for Bank Century. However, positions of foreign investors did not take off in large numbers from the market," he told Bisnis tonight.

He considered that ownership of foreign investors is also reflected from the auction result that held on Tuesday. Directorate General of Debt Management site shows the results of three series SUN auction by the government was successfully launch the investment instrument IDR5.8 trillion, larger than the indicative target the government set at IDR4 trillion level.

Value of the issuance was also greater than last week's auction results, IDR4.42 trillion. In the last two auction, bidders submit bids in large numbers in the amount of IDR12.34 trillion in the last week auction and for IDR13.01 trillion in an auction that was held this weekend.

SUN ownership by foreign investors continue to increase accumulated since the beginning of this week, IDR1.68 trillion from the level of IDR119.13 trillion since February 18th to as low as IDR120.81 trillion to the end of last month.

SUN ownership report mentions that ownership had declined to the level IDR119.12 trillion in February 22th and IDR118.87 trillion on February 23th. However, the ownership movement was up again on February 24th and February 25th.

Ramdhan assess the number of requests that are not absorbed by the government in the auction led to some bond market participants seeking SUN instruments in the secondary market, causing prices of government bonds in the secondary market increased.

The government also intends to auctioning four series of state sharia securities (SBSN/state sukuk) with the indicative target of IDR1 trillion. The four series are IFR003 due on 2015, IFR0005 due 7 years, IFR0006 due 11 years, and 15 years tenured IFR0007.

Yield value that the government released to bidders on Tuesday also still in range of PT Bank Danamon Indonesia Tbk bond strategist & economist Helmi Arman prediction in his research before the auction. He estimated yield for SPN20110303 series at level 6.81% - 6.93%, FR0027 series at level 8.4% - 8.53%, and the level of yield 10.62% - 10.75% for FR0052 series.